Lowe’s Companies Inc. is projected to report second-quarter earnings of $4.23 per share on revenue of $26.16 billion, according to analyst estimates compiled ahead of the retailer’s results due in July. The forecast reflects a 2.3% year-over-year decline in profit despite a 9.2% increase in sales during the same period last year.
The company’s first-quarter results showed earnings of $3.03 per share on $23.08 billion in revenue, with revenue growth of 9.2% offsetting a 2.3% decline in profit. Wall Street maintains a predominantly bullish stance, with 24 of 35 analysts rating the stock a buy. The retailer’s market capitalization stands at $121 billion, with a consensus price target of $261.06, implying roughly 21% upside from its current price of $215.81.
Estimates have softened in recent months, with earnings per share projections declining by 0.5% and revenue estimates slipping by 0.4% over the past two months. The stock has traded between $199.40 and $293.06 over the past 52 weeks.
Lowe’s continues to expand its professional contractor segment, though its Pro penetration remains at 30%, trailing Home Depot’s roughly 50%. The company has set a productivity savings target of approximately $1 billion by 2026, aiming to offset broader macroeconomic pressures.
Housing market headwinds persist, with the average 30-year fixed mortgage rate at 6.53% in late May, limiting homebuyer activity. Analysts caution that elevated borrowing costs and cautious consumer spending may weigh on second-quarter performance despite prior quarters exceeding revenue expectations.
